UK economy nears 'perilous turning point' on Covid-19

COVID cases are rapidly increasing in the UK as a second wave hits the country. The country has implemented more heavy restrictions. “The government’s chief scientific and medical advisers have warned that new daily cases of Covid-19 could accelerate to 50,000 by mid-October, with 200 deaths a day by the following month. In the UK as of 29 September, 446,156 cases of coronavirus have been confirmed and 42,072 deaths.” Along with the more heavy restrictions and uncertainties, the stock markets have taken a hit as seen with other markets around the world. The restrictions could significantly hurt the UK’s economic recovery. The government’s budget deficit will continue to widen as they are trying to support businesses, workers, and households. The government had an “eat out to help out” scheme which some experts are saying has led to the rapid increase in cases, although it did reduce inflation. “The consumer price index (CPI) measure of inflation fell to 0.2% from 1% a month earlier.” The experts are saying that was the result of pent-up demand, but the economy was losing momentum even before more restrictions were being speculated.

Partington, Richard. “UK Economy Nears 'Perilous Turning Point' on Covid-19.” The Guardian, Guardian News and Media, 29 Sept. 2020, www.theguardian.com/business/2020/sep/29/uk-economy-nears-perilous-turning-point-on-covid-19.